Can you please help me the Question1 part 2 and Question2 -the value of the option?

12 Months Ended Dec 31, 2017 CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS- USD ($) $ in Millions Income Statement [Abstract] Sales Question 1 Part 2 $9,549 Cash Flow Cost of sales Depreciation Gross profit 6,508 587 2,454 EBIT NOPAT Depreciation Selling, general and administrative expenses Research and development expenses 699 215 CAPEX Chang in working capital Asset impairments and restructuring charges, net 8 Free Cash Flow 2017 Operating earnings Net interest expense Other (income) charges, net Earnings before income taxes provision for income taxes (tax rate: 30%) Net earnings 1,532 241 (35) 1,326 398 928 Note: if this figure is postive, it means a charge (expense). If it is negative, it means Dec. 31, 2017 Dec. 31, 2016 $ 191 1,026 360 1,509 57 3,143 $ 181 812 399 1,404 70 2,866 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions Current assets Cash and cash equivalents Trade receivables, net of allowance for doubtful accounts Miscellaneous receivables Inventories Other current assets Total current assets Properties Properties and equipment at cost 1 Less: Accumulated depreciation 2 Net PPE 3 Goodwill Intangible assets, net of accumulated amortization Other noncurrent assets 5 Total assets Current liabilities Payables and other current liabilities Borrowings due within one year (current portion of interest-bearing debt) Total current liabilities 1 Long-term borrowings Deferred income tax liabilities 12,370 6,763 5,607 4,527 2,373 349 15,999 11,699 6,423 5,276 4,461 2,479 375 15,457 [1] 1,589 393 1,982 6,147 893 1,512 283 1,795 6,311 1,206 963 534 10,519 1,018 519 10,849 Post-employment obligations Other long-term liabilities Total liabilities Stockholders' equity Common stock ($0.01 par value per share - 350,000,000 shares authorized; shares issued |- 218,369,992 and 217,707,600 for 2017 and 2016, respectively) Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity before treasury stock Less: Treasury stock at cost (75,454,111 shares for 2017 and 71,269,474 shares for 2016) Total Eastman stockholders' equity Noncontrolling interest Total equity Total liabilities and stockholders' equity 1,984.00 6,803.00 (209.00) 8,578 3,175 5,403 77 5,480 $ 15,999 1,916 5,722 (281) 7,357 2,825 4,532 76 4,608 $ 15,457 Question 2 -Value of the option Favorable Market Condition Unfavorable Market Condition w/ option to abandon early Unfavorable Market Condition w/o option to abandon early Probability of favorable market condition Probability of unfavorable market condition Value of project w/ option Value of project w/o option Value of the option 12 Months Ended Dec 31, 2017 CONSOLIDATED STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS- USD ($) $ in Millions Income Statement [Abstract] Sales Question 1 Part 2 $9,549 Cash Flow Cost of sales Depreciation Gross profit 6,508 587 2,454 EBIT NOPAT Depreciation Selling, general and administrative expenses Research and development expenses 699 215 CAPEX Chang in working capital Asset impairments and restructuring charges, net 8 Free Cash Flow 2017 Operating earnings Net interest expense Other (income) charges, net Earnings before income taxes provision for income taxes (tax rate: 30%) Net earnings 1,532 241 (35) 1,326 398 928 Note: if this figure is postive, it means a charge (expense). If it is negative, it means Dec. 31, 2017 Dec. 31, 2016 $ 191 1,026 360 1,509 57 3,143 $ 181 812 399 1,404 70 2,866 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions Current assets Cash and cash equivalents Trade receivables, net of allowance for doubtful accounts Miscellaneous receivables Inventories Other current assets Total current assets Properties Properties and equipment at cost 1 Less: Accumulated depreciation 2 Net PPE 3 Goodwill Intangible assets, net of accumulated amortization Other noncurrent assets 5 Total assets Current liabilities Payables and other current liabilities Borrowings due within one year (current portion of interest-bearing debt) Total current liabilities 1 Long-term borrowings Deferred income tax liabilities 12,370 6,763 5,607 4,527 2,373 349 15,999 11,699 6,423 5,276 4,461 2,479 375 15,457 [1] 1,589 393 1,982 6,147 893 1,512 283 1,795 6,311 1,206 963 534 10,519 1,018 519 10,849 Post-employment obligations Other long-term liabilities Total liabilities Stockholders' equity Common stock ($0.01 par value per share - 350,000,000 shares authorized; shares issued |- 218,369,992 and 217,707,600 for 2017 and 2016, respectively) Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity before treasury stock Less: Treasury stock at cost (75,454,111 shares for 2017 and 71,269,474 shares for 2016) Total Eastman stockholders' equity Noncontrolling interest Total equity Total liabilities and stockholders' equity 1,984.00 6,803.00 (209.00) 8,578 3,175 5,403 77 5,480 $ 15,999 1,916 5,722 (281) 7,357 2,825 4,532 76 4,608 $ 15,457 Question 2 -Value of the option Favorable Market Condition Unfavorable Market Condition w/ option to abandon early Unfavorable Market Condition w/o option to abandon early Probability of favorable market condition Probability of unfavorable market condition Value of project w/ option Value of project w/o option Value of the option